Mining contribution to economic stability – It can be said that the mining industry is as old as man; this multi-billion dollar industry has been experiencing innovations and growth for a long period. There’s no doubt that the mining industry has contributed immensely to the development of the global economy also serving as the mainstay of the economy of many nations of the world.
While oil and gas and technology seem to be the driving force for today’s economy, mining is still held in awe all over the world for its many contributions to the economic stability of nations of the world.
This article will highlight the contribution of the mining sector to the economic stability of nations of the world using the following parameters:
- Improved Gross Domestic Product
- Employment and job creation
- The attraction of direct foreign investment
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Improved Gross Domestic Product
Mining has for several years sustained the economy of nations of the world, serving as a valuable means of export and a major contributor to the GDP of these nations. For example, South Africa (one of the countries with fully-established mining structures due to the abundance of minerals on her coast) generated over R351 billion from mining in 2018.
Botswana, another country with mineral abundance makes up to 70 percent of its export earnings from the mining of minerals. Countries like Zambia and DRC also make a significant portion of their GDP from mining.
Due to weak regulations and lots of artisan mining in Nigeria, she was only able to record 5.3 billion naira from mining in 2019. The unofficial record will most likely be far higher than the reported revenue.
With more than 15 billion deposits of bitumen, 3 billion metric tons of iron ore, 10 million deposits of lead-zinc of deposits and many other valuable mineral resources, Nigeria is sitting on resources that can drastically change its economic course.
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Employment and job creation:
The mining sector can be a major employer of labour and this will help in multidimensional ways. A society with more gainfully employed people will have lower crime rates, better security, improved standard of living and more socially responsible citizens. The aforementioned conditions are a prerequisite for a healthy society.
According to a study conducted in 180 countries across the world and made available on the website of the International council of mining and metals 3-15% of generated jobs in these countries are from the mining industry. In South Africa for instance, over 456,438 people are employed by the mining sector of the country. The statistics are slightly similar to that of Slovakia which is also a mining giant.
From these statistics, it is evident that Nigeria can also achieve higher employment rate if more attention is given to the mining sector. The mining sector has contributed and is still contributing to reducing the unemployment index of nations.
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The attraction of Foreign Direct Investment:
Economies are built on investments and countries that are able to attract foreign investments will witness a major boost in their economy. With an enabling environment for investment, Nigeria and other African countries can experience a significant surge in Foreign Direct Investment and the impact will be felt across all strata of the economy.
South Africa is an example of the country that witnessed significant boost as a result of the massive inflow of FDI into her mining industry.
For instance, the presence of B2Gold (A Canadian mining firm) in Namibia has pumped more than $400million worth of Foreign Direct Investment into the Namibian economy.
For obvious reasons, African countries are at a better position to attract high Foreign Direct Investment from developed nations and multinational corporations.
Conclusion
The economic benefits of mining are not easily dismissible; it is a huge source of revenue for lots of countries. This industry has been able to generate revenue for individuals, communities and government. It is an industry that benefits all parties.
With the right personalities and professionals at the helms of our affairs as a nation, proceeds from mining can significantly change our economic condition.
As a mining company, we are well-informed about the many economic benefits of mining, adept with the latest mining practices and safety guidelines and we are also up-to-date with the market value of materials.
By partnering with us, you won’t have to worry about the technicalities of mining, quality assurance and how to find the right buyer for the mined minerals. If you will like to know more about the economic benefits associated with mining in Africa and how you can benefit from these opportunities, contact us via any of the options contained on our contact page.